Kroger Company (KR) Stock

Kroger Company trades at a P/E ratio of 56.86, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 12.00 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.27 indicates reasonable value when growth is considered.

With a beta of 0.60, Kroger Company is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 5.77 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Kroger Company achieves a profit margin of 0.54%, meaning it retains $0.54 from every $100 in revenue after all expenses. This relatively low margin suggests the company operates in a competitive environment or high-cost industry where profitability is challenging. The operating margin of 3.10% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 8.00% and ROA at 5.19%, the company achieves moderate returns on invested capital.

Kroger Company's revenue grew by 0.70% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 42.20% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against GROCERY STORES industry averages for proper context.

Kroger Company offers a dividend yield of 2.14%, paying $1.34 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Nov 14, 2025.

The dividend sustainability can be assessed through the payout ratio - Kroger Company pays $1.34 per share in dividends against earnings of $1.13 per share, resulting in a payout ratio of 100.00%. This very high payout exceeding 90% raises sustainability concerns, as nearly all earnings go to dividends. Any earnings decline could force a dividend cut. The next dividend payment is scheduled for Dec 1, 2025.

Kroger Company has a market capitalization of $42.6B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 632.85M shares outstanding, the company's ownership is relatively concentrated. As a participant in the GROCERY STORES industry, it competes with other firms in this sector.

Kroger Company's book value per share is $12.34, while the current stock price is $61.66, resulting in a price-to-book (P/B) ratio of 5.00. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

24 analysts cover KR with 42% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $73.18 implies 18.7% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:010 Buy, 14 Hold, 00The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.